Candies go through a life cycle just like any other product in the marketplace. Often broken into four separate phases, product life cycles start with inception and end with elimination -- or, at least, removal from the marketplace. But critics believe this theory is no longer valid, as not all products “die,” nor do they remain in the same phases of the product life cycle for the same amount of time.

Introduction

The first phase of any product life cycle is introduction. But the term “introduction” is somewhat misleading, as this phase includes more than just the official launch of a product. A better name would be development and introduction. Within the candy industry, companies must first develop a product, identify its market and determine how to manufacture it. They must also create a prototype, test it, run a pilot production and design the packaging. From there, companies must decide how to promote the product to its target customers, which is usually done in one of two ways: penetration, in which a product is priced low to better penetrate and secure consumers; or skimming, when the product is priced high and then lowered slowly over time.

Growth

If the candy survives its launch, it usually moves into its growth phase. This is the phase in which most of the profits are seen. Manufacturers ramp up production, which usually lowers unit costs and, thereby, improves return. This is also the phase where marketing becomes even more crucial. Instead of advertising to just the initial target customers, campaigns focus on the masses and building loyalty to the brand. It’s also important to note that some candies survive their launch but don’t ever grow beyond their initial target customers, and manufacturers must decide whether to terminate production. If, however, the candy catches on, it isn’t uncommon to see competitors cropping up. Other companies want to cash in on the demand, so they create imitators.

Maturity

After a candy hits its peak, it moves into its maturity phase. Candies can spend years here. Look at the current market, and you’ll find candies from the 1920s, '30s and '40s -- with much different packaging, of course. Sales stabilize, and manufacturers must focus their attention of defending their market share. Even more funds are diverted to marketing to continue building brand loyalty, as well as to fend off the penetration of their competitors. During this phase, manufacturers may also start developing “offshoots” of successful products or totally new candies.

Decline

The final phase of a product life cycle is decline. Even if sales were once stable, the demand for the product could deteriorate, and sales dwindle. Companies may choose to repackage or redesign the candy to improve sales. They may also sell it off to a competitor or discontinue to product altogether.

About the Author

Based in Minneapolis, Minn., Dana Severson has been writing marketing materials for small-to-mid-sized businesses since 2005. Prior to this, Severson worked as a manager of business development for a marketing company, developing targeted marketing campaigns for Big G, Betty Crocker and Pillsbury, among others.